How to create your own budget in monthly with considering needs and wants and show the savings,if you have 100000frw as capital?

To create a budget that considers both needs and wants and shows savings, follow these steps:

1. List your monthly income: Start by listing all sources of income you have, such as salary, side hustle, or any other income streams. For this example, let's assume your monthly income is 100,000 FRW.

2. Identify your needs: Make a list of essential expenses that you need to cover each month, such as rent, utilities, groceries, transportation, and insurance. Estimate how much you typically spend on each of these categories.

3. Allocate funds for needs: Allocate a portion of your income to cover your needs. For example, you may allocate 50,000 FRW for rent, 20,000 FRW for groceries, 10,000 FRW for utilities, 5,000 FRW for transportation, and 5,000 FRW for insurance.

4. Identify your wants: Make a list of non-essential expenses that you want to spend money on, such as dining out, entertainment, shopping, and travel. Estimate how much you typically spend on each of these categories.

5. Allocate funds for wants: Allocate a portion of your income to cover your wants. For example, you may allocate 10,000 FRW for dining out, 5,000 FRW for entertainment, 5,000 FRW for shopping, and 5,000 FRW for travel.

6. Calculate savings: Subtract your total expenses (needs + wants) from your total income to calculate your savings. In this example, your total expenses would be 100,000 FRW (50,000 FRW for needs + 25,000 FRW for wants), leaving you with 0 FRW in savings.

7. Adjust your budget: If your savings are not sufficient, consider cutting back on your wants or finding ways to reduce your expenses. You may also consider increasing your income through additional work or investments.

By following these steps, you can create a budget that considers both your needs and wants while also prioritizing savings. Remember to review and adjust your budget regularly to ensure you are on track to meet your financial goals.

Creating a Monthly Budget with 100,000 FRW Capital

1. Categorize Expenses

- Needs: Expenses that are essential for survival and well-being (e.g., rent, food, utilities)
- Wants: Expenses that are not necessary but enhance your lifestyle (e.g., entertainment, dining out)
- Savings: A portion of your income set aside for future financial goals

2. Determine Fixed Expenses (Needs)

- Rent/Mortgage: 20,000 FRW
- Utilities (electricity, water, etc.): 10,000 FRW
- Food: 20,000 FRW
- Transportation: 10,000 FRW
- Healthcare: 5,000 FRW

3. Allocate for Wants

- Entertainment (movies, concerts, etc.): 5,000 FRW
- Dining out: 5,000 FRW
- Shopping: 5,000 FRW

4. Set a Savings Goal

- Emergency fund: 10,000 FRW
- Retirement: 5,000 FRW
- Other financial goals: 5,000 FRW

5. Calculate Monthly Expenses

- Needs: 65,000 FRW
- Wants: 15,000 FRW
- Savings: 20,000 FRW

6. Monthly Budget

| Category | Amount (FRW) |
|---|---|
| Needs | 65,000 |
| Wants | 15,000 |
| Savings | 20,000 |
| Total | 100,000 |

7. Track Your Expenses

- Use a budgeting app, spreadsheet, or notebook to track your income and expenses.
- Compare your actual expenses to your budget regularly and make adjustments as needed.

Tips for Sticking to Your Budget:

- Be realistic about your wants and savings goals.
- Plan for unexpected expenses by creating an emergency fund.
- Find ways to cut back on unnecessary expenses.
- Review your budget monthly and make adjustments as needed.
- Don't be afraid to ask for help from a financial advisor if you need it.